Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investment project costs $10,000 and has annual cash flows of $2,910 for six years. a. What is the discounted payback period if the discount

image text in transcribed
An investment project costs $10,000 and has annual cash flows of $2,910 for six years. a. What is the discounted payback period if the discount rate is 0 percent? (Enter 0 If the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b.What is the discounted payback period if the discount rate is 6 percent? (Enter O if the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period if the discount rate is 20 percent? (Enter O if the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) years Discounted payback period Discounted payback period Discounted payback period years years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions